What is Share?
What is Share? If a Company’s capital is divided equally in certain units, then they are share of company. The main purpose of share is certain right in capital of a company. A share represents a single unit of ownership in a company. When a company wants to raise capital to fund operations, expand, or pay off debt, it can divide its total equity into small, equal units called shares and offer them to the public or private investors. When you purchase a share, you become a shareholder —meaning you own a fractional piece of that business. Core Types of Shares Equity Shares (Ordinary Shares): The most common type. Holders receive voting rights on major corporate decisions and may receive variable dividends based on company profitability. However, in the event of liquidation, equity shareholders are paid last. Preference Shares: Holders do not usually have voting rights, but they receive a fixed dividend rate and have preferential prior...